Pacific Business Review International

Volume 6, Issue 9, March 2014

Role of Commercial Banks in Sustainable Development of Women

Entrepreneurs in India

Dr. S. Deepa*

*Lecturer in Commerce
Sri Sarada College for Women (Autonomous)
Salem - 636 016
Tamilnadu, India

Abstract
Women Entrepreneurs may be defined as the women or a group of women who
initiate, organize and operate a business enterprise. The Government of India
has defined women entrepreneurs as ''an enterprise owned and controlled by
women having a minimum financial interest of 51 per cent of the capital and
giving at least 51 per cent of the employment generated in the enterprise to
women. A sense towards independent decision-making on their life and
career is the motivational factor behind this urge.
The glass ceilings are shattered and women are found indulged in every line of
business. The entry of women into business in India is traced out as an
extension of their kitchen activities, mainly 3P's, Pickle, Powder and Pappad.
But with the spread of education and passage of time women started shifting
from 3P's to modern 3E's i.e., Energy, Electronics and Engineering. Skill,
knowledge and adaptability in business are the main reasons for women to
emerge into business ventures. The challenges and opportunities provided to
the women of digital era are growing rapidly that the job seekers are turning
into job creators.
Women entrepreneurship must be moulded properly with entrepreneurial
traits and skills to meet the changes in trends, challenges global markets and
also be competent enough to sustain and strive for excellence in the
entrepreneurial arena. If every citizen works with such an attitude towards
respecting the important position occupied by women in society and
understanding their vital role in the modern business field too, then very soon
we can pre-estimate our chances of out beating our own conservative and rigid
thought process which is the biggest barrier in our country's development
process.

Keywords:
Women Entrepreneurs, India, Commercial Banks, Development

Introduction
The women of 21st century do not want to limit their lives in the four walls of
the house. They demand equal respect from their partners. However, Indian
women have to go a long way to achieve equal rights and position because
traditions are deep rooted in Indian society where the sociological set up has
been a male dominated one. The Indian culture made them only subordinates
and executors of the decisions made by other male members, in the basic
family structure. While at least half the brainpower on earth belongs to
women, women remain perhaps the world's most underutilized resource.

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Despite all the social hurdles, India is brimming with the success
stories of women. The transformation of social fabric of the Indian
society, in terms of increased educational status of women and
varied aspirations for better living, necessitated a change in the life
style of Indian women. She has competed with man and
successfully stood up with him in every walk of life and business is
no exception for this. These women leaders are assertive,
persuasive and willing to take risks. They managed to survive and
succeed in this cut throat competition with their hard work,
diligence and perseverance. To learn quickly from her abilities, her
persuasiveness, open style of problem solving, willingness to take
risks and chances, ability to motivate people, knowing how to win
and lose gracefully are the strengths of the Indian women
entrepreneurs.
Concept of Women Entrepreneurs
Women Entrepreneurs may be defined as the women or a group of
women who initiate, organize and operate a business enterprise.
The Government of India has defined women entrepreneurs as
''an enterprise owned and controlled by women having a
minimum financial interest of 51 per cent of the capital and giving
at least 51 per cent of the employment generated in the enterprise
to women. A sense towards independent decision-making on
their life and career is the motivational factor behind this urge.
Reasons for Women Becoming Entrepreneurs
The glass ceilings are shattered and women are found indulged in
every line of business. The entry of women into business in India is
traced out as an extension of their kitchen activities, mainly 3P's,
Pickle, Powder and Pappad. But with the spread of education and
passage of time women started shifting from 3P's to modern 3E's
i.e., Energy, Electronics and Engineering. Skill, knowledge and
adaptability in business are the main reasons for women to emerge
into business ventures. The challenges and opportunities provided

46

to the women of digital era are growing rapidly that the job seekers
are turning into job creators. Many women start a business due to
some traumatic event, such as divorce, discrimination due to
pregnancy or the corporate glass ceiling, the health of a family
member, or economic reasons such as a layoff. But a new talent
pool of women entrepreneurs is forming today, as more women
opt to leave corporate world to chart their own destinies. They are
flourishing as designers, interior decorators, exporters, publishers,
garment manufacturers and still exploring new avenues of
economic participation.
Reasons for Slow Progress of Women Entrepreneurs in India
The problems and constraints experienced by women
entrepreneurs have resulted in restricting the expansion of women
entrepreneurship. The major barriers encountered by women
entrepreneurs are:
Many women take the training by attending the
Entrepreneurial Development programme without an
entrepreneurial bent of mind. Women who are imparted
training by various institutes must be verified on account of
aptitude through the tests, interviews, etc.
High production cost of some business operations adversely
affects the development of women entrepreneurs. The
installations of new machineries during expansion of the
productive capacity and like similar factors discourage the
women entrepreneurs from venturing into new areas.
Lack of awareness about the financial assistance in the form
of incentives, loans, schemes etc. by the institutions in the
financial sector. So the sincere efforts taken towards women
entrepreneurs may not reach the entrepreneurs in rural and
backward areas.

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Volume 6, Issue 9, March 2014

Role of Commercial Banks in Financial Sector that Work for

Women Entrepreneurs
1.

Offer / design the products based on their needs

Low rate of interest based products
Collateral free
Easy processing system
Repayment system based on business nature
Adopt standards on performance in
Client reach
Efficiency, profitability
Financial integration
Provide appropriate support modalitiesinstitutions that
meet high standards need
Policies, regulations and legal structures that fit women
entrepreneurs
Financial counseling and training
Commercial linkages
Business advisory services
Dealing with legal barriers

Financial sector policies

Central Bank policy

Legal structures

Performance indicators

Business Knowledge

WE networks, associations

Banking knowledge

Market knowledge & networking

Technological applications

Product Offerings

Impact
3.

Technological services providers

Women Entrepreneurs Skills

Diversify products
2.

Small Credit facility

Working Capital

Loan for Machine purchase

Loan with grace period

Commercial Banks & Sustainable Development of Women

Entrepreneurs
Commercial banks have provided assistance to women
entrepreneurs to a large extent. This has directly led to the:

Increase in Income

Commercial Banks Roles in Financial Sector that Work for the

Women Entrepreneurs

Growth of Assets

Bank Finance Policy

Improved Standard of living

Increase in Women's Decision-making Power

Increase in Community Participation

Savings and other asset building products require attention.

Inclusive financial sector policies that incorporate measures

to ensure responsive, solid services to the women
entrepreneurs.

Suitable Interest rates

Steps Taken for Sustainable Development of Women

Entrepreneurs:

Increased attention is needed in measuring impact of bank

finance for women entrepreneurs.

Liberalized interest rates for women entrepreneurs, relying on

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competition and transparency to lower costs and rates.

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Pacific Business Review International

An explicit, supportive government policy and strategy for

women entrepreneurs, with objectives, key policies and
support, roles.

Educational institutes should tie up with various government

and non-government agencies to assist in entrepreneurship
development mainly to plan business projects.

Utilize technology to cut costs and expand outreach.

Build domestic financial markets for women entrepreneurs.

Information and business services for women entrepreneurs.

International, National, Local trade fairs, Industrial

exhibitions, seminars and conferences should be organized to
help women to facilitate interaction with other women
entrepreneurs.

Women in business should be offered soft loans & subsides

for encouraging them into industrial activities. The financial
institutions should provide more working capital assistance
both for small scale venture and large scale ventures.

Making provision of micro credit system and enterprise credit

system to the women entrepreneurs at local level.

The weaker section could raise funds through various

schemes and incentives provided by the government to
develop entrepreneurs in the state. E.g. the Prime ministers
Rozgar Yojana, The Khadi and Rural village industries
scheme, etc.

Attempts by various NGO's and government organizations to

spread information about policies, plans and strategies on the
development of women in the field of industry, trade and
commerce. Women entrepreneurs should utilize the various
schemes provided by the Government.

To establish all India forums to discuss the problems,

grievances, issues, and filing complaints against constraints
or shortcomings towards the economic progress path of
women entrepreneurs and giving suitable decisions in the
favor of women entrepreneurs and taking strict stand against
the policies or strategies that obstruct the path of economic
development of such group of women entrepreneurs.

Schemes Provided by The Government for Women

Entrepreneurs
At present, the Government of India has over 27 schemes for
women operated by different departments and ministries. Some of
these are:

Women's Development Corporations (WDCs)

Marketing of Non-Farm Products of Rural Women

(MAHIMA)

Assistance to Rural Women in Non-Farm Development

(ARWIND) schemes

Working Women's Forum

Indira Mahila Yojana

Indira Mahila Kendra

Mahila Samiti Yojana

Mahila Vikas Nidhi

Suggestions for The Growth of Women Entrepreneurs:

Right efforts from all areas are required in the development of
women entrepreneurs and their greater participation in the
entrepreneurial activities. Entrepreneurship basically implies
being in control of one's life and activities and women
entrepreneurs need to be given confidence, independence, and
mobility to come out of their paradoxes. The following measures
are suggested to empower the women to seize various
opportunities and face challenges in business.

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An Awareness programme should be conducted on a mass

scale with the intention of creating awareness among women
about the various areas to conduct business.

Attempts should be there to enhance the standards of

education of women in general as well making effective
provisions for their training, practical experience and
personality development programmes, to improvise their
over-all personality standards.

Organize training programmes to develop professional

competencies in managerial, leadership, marketing,
financial, production process, profit planning, maintaining
books of accounts and other skills. This will encourage
women to undertake business.

Vocational training to be extended to women community that

enables them to understand the production process and
production management.

Skill development to be done in women's polytechnics and

industrial training institutes. Skills are put to work in trainingcum-production workshops.

Thus by adopting the following aforesaid measures in letter and

spirit the problems associated with women can be solved.
Entrepreneurship is not a bed of roses to women. Women
participation in many kinds of economic activities to complement
to their family income, their participation in no way reduces their
family duties. The task of women has become more tedious and
full of challenges.
Conclusion
It can be said that today we are in a better position wherein women
participation in the field of entrepreneurship is increasing at a
considerable rate. Efforts are being taken at the economy as
brought promise of equality of opportunity in all spheres to the
Indian women and laws guaranteed equal rights of participation in
political process and equal opportunities and rights in education
and employment were enacted. But unfortunately, the government
sponsored development activities have benefited only a small
section of women i.e. the urban middle class women. Women
sector occupies nearly 45% of the Indian population. At this
juncture, effective steps are needed to provide entrepreneurial
awareness, orientation and skill development programs to women.
Resurgence of entrepreneurship is the need of the hour
emphasizing on educating women strata of population, spreading
awareness and consciousness amongst women to outshine in the
enterprise field, making them realize their strengths, and important
position in the society Women entrepreneurship must be moulded

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Volume 6, Issue 9, March 2014

properly with entrepreneurial traits and skills to meet the changes

in trends, challenges global markets and also be competent enough
to sustain and strive for excellence in the entrepreneurial arena. If
every citizen works with such an attitude towards respecting the
important position occupied by women in society and
understanding their vital role in the modern business field too, then
very soon we can pre-estimate our chances of out beating our own
conservative and rigid thought process which is the biggest barrier
in our country's development process.
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